Multichain's Issued Assets
After the rumors involving the Multichain team being arrested, we decided to take a look at the protocols with the highest exposure to it.
In first place comes Fantom, with 35% of its total TVL locked in it and a significant portion of the chain's assets issued by the bridge.
40% of all Fantom assets, excluding its native $FTM token, are issued by Multichain.
These assets, primarily wrapped ones, amount to $650M, signaling a significant reliance on the bridge.
Looking at stablecoins, the situation becomes more concerning.
Multichain issues 81% of the total stablecoin market cap within the Fantom ecosystem, with $USDC leading at $194M out of $458M.
Fantom's substantial exposure to Multichain presents a significant risk to be considered by users, especially in light of recent developments.
These could potentially impact the entire ecosystem and its liquidity.
The higher a protocol's exposure to a specific bridge, the greater the risk to user funds, as the accessibility to those assets could be compromised.
Therefore, it is important to remember that diversification can be a good strategy when managing such risks.